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FLEXO
MARCH 2010 www.flexography.org
INDUSTRY
INDICATORS
PMMI's "Beverage Packaging Market Assessment:
A Benchmark Study " is based on interviews with 71
leading beverage manufacturers and packaging supply
chain solutions providers, as well as other secondary
source research. The study was designed for PMMI
members to illustrate the trends and opportunities for all
supply chain partners.
Non-members can purchase the report for $3,500, at
PMMI.org. For more information, contact Paula Feld-
man, director of surveys & research: pfeldman@pmmi.
org or 703-243-8555.
PMMI is a trade association with more than 530
member companies that manufacture packaging,
processing and related converting machinery, commer-
cially-available packaging machinery components, con-
tainers and materials in the United States and Canada.
PMMI's vision is to be the leading global resource for
packaging, and its mission is to improve and promote
members' abilities to meet the needs of their customers.
the future, the report shows that manufacturers are looking to
their packaging suppliers for more aggressive time frames
in delivering the equipment necessary to provide the latest
container innovations. In response to the market demand for
beverages in many different package types and sizes, bever-
age manufacturers are asking for flexible machines that can
work with several types of packaging options and sizes.
According to PMMI, developing and offering versatile packag-
ing equipment may be key to gaining sales. This includes the
ability to handle multiple designs, sizes and materials, which
presents beverage manufactures with the benefits of reduced
production line changes, greater space utilization, and reduced
downtime and change outs. Further, packaging companies
offering superior service and support will be able to address an
unmet need of many beverage manufacturers, it claims.
CARBONATED SOFT DRINKS
Some carbonated soft drink respondents see their industry
stepping up to address health concerns by developing a wide
variety of healthy niche products that align with the consumer
preferences of "fun" and "good for you." Across all segments,
the study shows green packaging as a trend, but carbonated
soft drink respondents differentiated themselves by stating
that their segment will more quickly be moving away from
glass and aluminum in favor of biodegradable plastic.
For enhanced safety measures, respondents expect the
traceability of products to be greatly bolstered, to the point
where each primary ingredient will be traceable. While trace-
ability of primary ingredients was a growing challenge from
the safety point of view, there is far less if any mention about
traceability related to packaging.
WATER
A concern within the bottled water industry is that the
secondary packaging most often used on multi-packs was
too flimsy and did not provide adequate protection to the
water bottles. Respondents were mixed on whether or not to
prioritize green packaging so that it becomes a marketing
advantage or to simply be compliant in future regulations.
In regards to standards, many respondents believe that
sanitation will be the center of attention to ensure water sup-
plies and bottling processes are safe.
NON-CARBONATED SOFT DRINKS
Diverging from most other areas, the report claims this
category will see packaging shifting toward a "less is more"
philosophy. Packaging is expected to be focused on simplicity
with fewer frills in labeling. Some even believe that containers
will be designed to be reusable to minimize the carbon foot-
print. Cost is definitely a concern for nearly all respondents
but non-carbonated soft drink companies specifically stated
that they want help acquiring new packaging equipment
through better financing options from packaging suppliers.
Some of the new packaging equipment purchases will be
made to upgrade labeling equipment as some non-carbonated
soft drink manufacturers complained that they are having prob-
lems correctly placing labels on bottles in exactly the right place.
BEER, WINE & SPIRITS
Respondents as a whole in this segment see a trend to create
a more premium image of their products, according to PMMI.
For beer manufacturers, the establishment of microbrewery-type
products and innovation in the varieties of beer have created
a demand for packaging to better distinguish brands. This is
resulting in faster label and packaging innovation. There is also
an expected resurgence of aluminum bottle packaging to help
reduce weight while continuing to protect the product.
On the wine and spirits side, the move toward premium is a
major race. This is creating a resurgence of unique bottle types
and premium closures which represent a notable challenge to
packaging suppliers. This trend has no major sign of slowing.
Looking to the supply chain, the largest concerns are with
the quality of glass that beverage manufactures are receiv-
ing. For beverage manufacturers that use glass containers,
providing a more durable product would trump the demand
for lighter product.
A nuance for the spirits industry is that a wide majority of
respondents believe that taxes through government regula-
tion are going to change the beverage packaging industry by
forcing smaller beverage manufactures out of business.
ENERGY DRINKS
Energy drink manufacturers see their corner of the beverage
industry as a hyper-competitive market driven by a young con-
sumer group on an endless quest for something different for the
sake of being different. In response to this perspective, energy
drink manufacturers stood out from the pack in that they appear
to hold the most innovative vision for beverage packaging.
The report indicates that packaging is a way to not just dif-
ferentiate from other beverages, but also differentiate to the level
of being exotic and a fashion statement for its drinkers. An unuti-
lized way to offer value and appeal to consumers with more of a
fresh face multiple times a year is through seasonal packaging.
JUICE
Similar to energy drink manufacturers, those in the juice
segment were much more vocal in seeing packaging as an
area to be very different and stand out from the pack with
truly innovative packaging, the study shows. This segment
also believes that it will buck the trend of reducing package
sizes by developing larger consumer packages to differenti-
ate and demonstrate value. Juice manufacturers are expected
to drive packaging solutions that increase shelf life of juices
and offer a premium drink appearance.